NATCO PHARMA Announces Quarterly Results (1QFY20); Net Profit Down 21.1%

Tue, 13 Aug

NATCO PHARMA has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

NATCO PHARMA Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	5,386	4,557	4,923	8.0%	-8.6%
Other income	Rs m	359	310	210	-32.3%	-41.5%
Turnover	Rs m	5,745	4,867	5,133	5.5%	-10.7%
Expenses	Rs m	3,210	3,074	3,010	-2.1%	-6.2%
Gross profit	Rs m	2,176	1,483	1,913	29.0%	-12.1%
Depreciation	Rs m	184	217	220	1.4%	19.6%
Interest	Rs m	28	52	65	25.0%	132.1%
Profit before tax	Rs m	2,323	1,524	1,838	20.6%	-20.9%
Tax	Rs m	512	320	410	28.1%	-19.9%
Profit after tax	Rs m	1,811	1,204	1,428	18.6%	-21.1%
Gross profit margin	%	40.4	32.5	38.9
Effective tax rate	%	22.0	21.0	22.3
Net profit margin	%	31.5	24.7	27.8

Year-on-Year Performance:

• The company's operating income during the quarter fell 8.6% on a year-on-year (YoY) basis. The expenses were down by 6.2% YoY during the same period.
• The company's operating profit declined by 12.1% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 38.9% in 1QFY20 as against 40.4% in 1QFY19.
• Depreciation charges increased by 19.6% and finance costs increased by 132.1% YoY, respectively.
• Other income declined by 41.5% YoY during the quarter.
• Net profit for the quarter declined by 21.1% YoY. Net profit margins during the quarter declined from 31.5% in 1QFY19 to 27.8% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 8.0% on a quarter-on-quarter (QoQ) basis. The expenses were down by 2.1% QoQ during the same period.
• The company's operating profit increased by 29.0% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 38.9% in 1QFY20 as against 32.5% in 4QFY19.
• Net profit for the quarter increased by 18.6% QoQ, while net profit margins increased from 24.7% in 4QFY19 to 27.8% in 1QFY20.

To see how NATCO PHARMA has performed over the last eight quarters,please visit here.

NATCO PHARMA Share Price Performance

Over the last one year,NATCO PHARMA share price has moved down from Rs 768.0 to Rs 546.4, registering a Loss of Rs 221.6 or around 28.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,722.2 (up 0.2%). Over the last one year it has moved down from 14,332.1 to 12,722.2, a gain of 1,610 points (down 11.2%).

Overall, the S&P BSE SENSEX is down 1.3% over the year.

Current Valuations

At the current price of Rs 546.4, the price to earnings (P/E) ratio of NATCO PHARMA stands at 15.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.0 times.